At time of writing the share price of Medlab Clinical Limited [ASX:MDC] is up 9.86%, trading at 39 cents.
It has been a rocky year for the stock with the recent announcement a welcome reprieve for long-term investors:
The latest news out of the company is that it has announced a Heads of Agreement with Canadian pharmaceutical company Pharmascience Inc.
Medlab Clinical share price reacts to announcement
Medlab’s share price got a solid bump today as it announced that the agreement would, ‘provide for both parties to negotiate various research, regulatory and commercial milestones involving potential global territories for NanaBis™.’
NanaBis™ is a CBD/THC buccal (side of cheek) spray that is currently undergoing a Stage 2 trial for pain associated with having cancer. It is available under the Australian Government’s Special Access Scheme.
The fourth largest generic pharmaceutical company in Canada, Pharmascience will work with Medlab Clinical, potentially opening up the NanaBis™ product for global distribution.
Medlab’s CEO, Dr Sean Hall greeted the deal by saying,
‘NanaBis™ is in an exciting stage of its development as the Company looks to fast track global drug approval pathways. This Heads of Agreement signifies real intent and interest for a true global pharmaceutical company to enter legitimate science as it relates to cannabis that has been research focused into a serious condition: cancer pain.’
What’s next for Medlab Clinical?
Quite a bit hinges on the outcome of the stage 2 trial for its NanaBis™ product, and a positive outcome could see its share price improve.
It also has a Phase 2 trial in the works at the moment for another product that aims to treat depression, so this could be a factor in the coming months.
With a heavy focus on clinically developed products, the company currently has approximately $16.1 million in cash and cash equivalents, so it can afford to put more money into marketing and product development while it waits on the outcome of trials.
For Money Morning